ConvergEx Group has made its ADR Direct and Reverse ADR products available through its execution management system, RealTick.
The functionalities begin in the trade montage with a color-coded conversion button which displays in real time if a security is available for conversion, irrespective of where the security is traded. It then calculates conversion ratios and the number of American depository receipts (ADRs)/ordinary shares to trade. Once an ADR/ordinary share trade has been executed, customers can facilitate conversions in the RealTick blotter with the ability to either convert all or some of the executed shares.
Users can also stage an order from their order management system (OMS) to RealTick and ConvergEx's ADR technology will electronically set up a trading ticket. Even though the executed orders are in a different market than the staged order, the fills will come back to the customer's OMS in the symbol and currency of the staged order.
"Our unique functionality gives ConvergEx customers a solution to easily and automatically convert ordinary shares to ADRs and ADRs to ordinary shares in real time within the RealTick execution blotter," says Andrew Levine, managing director and head of ConvergEx's ADR business. "It offers the benefits of extended liquidity hours, while minimizing market impact and reducing trading costs. In addition, we also give customers the flexibility to either electronically trade and execute conversions within RealTick or have the ConvergEx ADR Desk execute the conversion trade on their RealTick blotter."
ConvergEx Group signed an agreement in January to sell the Eze Castle Software and RealTick businesses to an affiliate of TPG Capital. The transaction is expected to close before the end of the second quarter of 2013.
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